NEW YORK (TheStreet) -- Cloud-based enterprise work management solutions company AtTask has become the latest investment target of JMI Equity, the venture capital firm that's been behind IPO success stories such as ServiceNow (NOW) and Eloqua, now an Oracle (ORCL) company.
AtTask said Tuesday morning that JMI Equity has led a $38 million, Series D round of funding for AtTask. The company will invest the proceeds into doubling down its sales and marketing efforts, building new products, expanding internationally, and shopping for acquisition targets to add to what's mostly been organic-driven growth.
"We're excited to have JMI Equity on board," AtTask CEO Eric Morgan told TheStreet. "They've guided other companies to greater success as well, and I think that that experience will be helpful for us. We're very happy to have them on board."
Now $38 million richer, the injection bolsters AtTask to a valuation that Morgan says he's "very happy with.""With our growth profile and the way JMI invests, they're not value investors," Morgan pointed out. "In other words, they weren't looking to get in at a low price. They were looking for companies that have been successful, that are willing to pay a fair valuation." AtTask's overall seed funding now totals $65 million in capital, with the latest round coming in substantially higher than the $17 million, Series C round obtained 18 months ago. "We're in a good position to bring on more capital to do something really exciting that we want to go after," said Morgan. "We feel good about using this capital or getting access to additional capital for M&A, and it's something that we're certainly looking at." Morgan attributes the investment interest to the company's strong growth profile, which has seen surging demand for the AtTask Marketing Work Cloud, international ambition, and large enterprise clients. AtTask last week posted fiscal 2013 results that included 50% year-over-year subscription growth, including the 410% subscription growth of the AtTask Marketing Work Cloud. Recurring subscriptions expanded by 63% and new business subscriptions grew by 42%. The company also booked 102% year-over-year growth in the number of clients paying more than $100,000 in annual recurring revenue. The bulk of AtTask's customers consist of Fortune 1,000 companies and beyond. Existing AtTask investors that also participated in the Series D round of capital include GreenSpring Associates, Escalate Capital and University Venture Fund. -- Written by Andrea Tse in New York. Follow @atwtse >Contact by Email.
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